The Beowulf Fund has extensive investments resulting from contributions that are restricted in perpetuity. Given that the Fund must disclose the data used (inputs) to measure the fair value of its investments using the FASB's three-level fair value hierarchy, in what level should the fund report its investments in equity securities that it obtained from the December 31^st Wall Street Journal?

Question

Quizplus · Accepted Answer

Level 1 inputs are quoted prices in active markets for identical assets at the reporting date. Level 2 inputs are inputs other than quoted prices that are observable for the asset, either directly or indirectly. Level 3 inputs are unobservable inputs, based on the reporting entity's pricing assumptions.

The Beowulf Fund Has Extensive Investments Resulting from Contributions That